CNN's Daniel Dale delivered a two-minute fact check of president Donald Trump's first major economic speech.
The president delivered virtual remarks Thursday to the World Economic Forum in Davos, Switzerland, where he bashed European tech regulations, complained about oil prices being too high and accused banks of refusing service to conservatives, and he also promised to put pressure on the Federal Reserve to cut interest rates and repeated threats over tariffs.
"This is how the president habitually describes how tariffs work," Dale began. "He warns foreign countries they'll have to pay them. In fact, it is U.S. importers, not those foreign exporters, who pay the tariffs, and we know from study after study and from just our experience living in the world that those importers often pass on the increased costs caused by the tariff to U.S. consumers. So it is Americans who are paying, not the foreign companies."
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"There were also a bunch of additional inaccuracies, exaggerations, misstatements on the subject of trade," Dale continued. "He said, it's not fair that we have a $200 billion or $250 billion trade deficit with Canada. Well, good news, it is not $200 billion or $250 billion, it's actually about $41 billion in goods and services. It's about $72 billion, even if you only count goods, and it's important to note that deficit is overwhelmingly caused by the fact that the U.S. imports a large quantity of cheap Canadian heavy crude oil that helps keeps Americans' gas prices down. So that's why there is that smaller deficit. He also said the EU essentially doesn't take U.S. farm products. He said this over and over again. In fact, the EU is the U.S.'s fourth-biggest export market for agricultural products, taking about $12 billion worth per year. He complained that Joe Biden let the trade deficit with China get out of hand. In fact, the record trade deficit with China was actually set under the first presidency of Donald Trump in 2018. It's come down under Joe Biden."
"He again referred to an electric vehicle mandate, saying that he's determined to let Americans buy whatever car they want," Dale added. "This is, I think, at least an exaggeration. It is true that Biden imposed strict new tailpipe rules that aim to push automakers towards making electric vehicles, depending on how automakers respond. Those rules could require them to make up to two-thirds of new cars sold in the U.S. be electric by 2032, but there has never been a Biden rule requiring any individual consumer to buy any individual kind of car, and then finally, he repeated his claim that he said, I think, under Biden, we had probably the highest inflation in U.S. history. Yes, it was high, about a 40-year high at one point in 2022, [but] never close to the all time record of more than 20 percent [in] decades past."
CNN anchor Dana Bash praised his work, and highlighted one line from his fact check that amused her.
"Daniel, you are armed with so many facts and it's so important to have you at all times," Bash said, laughing. "But when you say something like, 'We know this because we live in the world,' that is about the most perfect chef's kiss thing to say. Daniel, thank you very, very much – appreciate it."
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